avancier method (am) 103... · 2/1) coordination: different processes, integrated (share data) 2/2)...

Avancier

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Avancier Method (AM) “EA as Strategy”

After “Enterprise Architecture as Strategy” by Jeanne W. Ross, Peter Weill and David C.

Robertson)

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Avancier “EA as Strategy”

► Does not mean

■ Strategy is EA

● Business strategies are goals and high level plans that reflect the

decisions of chief executive officers (CxOs)

■ Strategies must be implemented by EA teams

● Many business strategies do not depend on EA teams

► Does mean we have the ambition to

■ Elevate EA goals and plans to the status of strategy

■ Commit CxOs to EA goals and plans


Avancier What is EA?

► A strategy to

■ Digitise core business process

■ Integrate processes across the business

■ Standardise processes across the business

► Maintain an enterprise description

■ A conceptual or logical description of business structure and behaviour

■ Business activities, data and resources

■ Why? To

■ optimise business operations

■ improve business and technical agility

■ improve the speed, cost and quality of future solution delivery

■ facilitate understanding and management of the business

■ improve business – IT alignment


High BP

integration

Coordination Unification

Low BP

integration

Diversification Replication

Low BP

standardisation

High BP

standardisation

Avancier


Positioning the “operating model” of core business processes

High BP

integration

One business

unit depends on

timely and

accurate data

from other units

Coordination

Shared customers, products & data

Different organisations and processes

Unification

Globally integrated

Standard processes & data

Central IT

Low BP

integration

Diversification

Different customers, products & data


Replication

Local customers, products & data

Shared organisations, processes &

data definitions

Low BP standardisation

High BP standardisation

The enterprise benefits from

different business units working the

same way

Retail Bank TELCO Phone

Broadcast Broadband

Franchise Brand

AKCO Shops, Phone

Internet

Local Gov

For example?

Avancier Standardisation and integration are not benefits per se

► A role of EA is to standardise and integrate core business

processes.

► Standardisation should

■ give economies of scale and

■ facilitate *global* change or innovation

■ but naturally tends to strangle *local* change or innovation.

► Integration should

■ reduce redundancy

■ increase quality.

■ but naturally widens the impact of a change.


Avancier

High BP

integration

One business unit

depends on timely

and accurate data

from other units

Coordination



Unification

Globally integrated


Central IT

Low BP integration

Diversification



Replication


Shared organisations, processes & data

definitions



The enterprise benefits from different

business units working the same way


Which Operating Model fits your business or division?

O P D

O D I P O P D O P D

O P D

O P D

O D I P

Avancier


Process for EA as Strategy

High level

Management consulting process

Fluffy cloud process

Process

1. Analyse your foundation for execution

2. Define your Operating Model

3. Design your Enterprise Architecture

4. Set Priorities

5. Design and implement an IT Engagement Model

6. Exploit your foundation for execution for growth

Avancier


1 Analyse your [IS/IT] foundation for [business] execution

► What processes are mission-critical? digitized?

► What data is easily accessible to employees and customers?

► What element of IT infrastructure are world class?

► Does the infrastructure provide what you need?

► What are the strengths and weakness?

■ Business services provided to customers?

■ Consistency and quality of business processes?

■ Integrity of data about customers, products, employees etc.?

■ Global accessibility and availability of applications?

Where are your

weaknesses?

Avancier


1 Analyse your foundation for execution (cont.)

► Have we mastered these

three disciplines?

1. Operating model

2. Enterprise architecture

3. IT engagement model

Foundation for execution •Core business processes •IT infrastructure

•What processes are mission-critical? digitized? •What data is easily accessible to employees and customers? •What element of IT infrastructure are world class •Does the infrastructure provide what you need? •What are the strengths and weakness

Operating Model •Integration requirements •Standardisation requirements

IT Engagement Model

Enterprise Architecture

Strategic initiatives




Avancier


1. IT governance at the senior levels of the company

2. Disciplined project management across all major projects

Links to ensure 1 and 2 reinforce one another

IT engagement model

Avancier


2 Define your Operating Model

► Identify the processes that distinguish you competitively

► Envision your customer’s experience as it ought to be

► Decide how you would like your company to grow

► Pick the dominant operating model (1 of 4) at each level in yr company

► Positioning a business (or part of it) in a quadrant of this grid.

After “Enterprise Architecture as Strategy” by Jeanne W. Ross, Peter Weill and David C. Robertson.)

High BP

integration


Low BP

integration


Low BP

standardisation

High BP

standardisation

Avancier

High BP

integration

One business unit

depends on timely

and accurate data

from other units

Coordination



Unification

Globally integrated


Central IT

Low BP integration

Diversification



Replication


Shared organisations, processes &

data definitions



The enterprise benefits from

different business units working the

same way


Deriving Operational Strategy from Operating Model

Linked & standard core processes

Standardised processes

Shared technologies

Shared customers

Shared data

Linked processes

Avancier 3. Design your EA to implement the Operating Model

► The next step is to draw a cartoon that represents your own

business’s operating model.

► The cartoon represents the interaction of processes and data

at a very high level of abstraction.

► The main use of this cartoon is in discussion with business

managers.

► It may or may not be formal enough for traceability to models

in the next level down.

Copyright Avancier Ltd 2013

Avancier


High BP

integration


Low


SILO Low High BP standardisation

3 Design your EA (to implement the Operating Model)

Automated & linked technologies

Unit-specific data

Unit-specific customers

Standardised processes

Shared processes

Unit-specific data

Unit-specific customers

Shared technologies

Linked & automating techn’gies

Shared Data

Key customers segments/channels

Linked & standard core processes

Linked processes

Integrating technologies

Shared customers

Shared data

Avancier


Key

EA Outcome

EA Process

3 Design your EA

► Agree a Core Diagram [a cartoon] of the chosen Operating Model

Data Processes Technologies Customers

Process

Technology

Data

Required

Optional

Customer

Types

Avancier


Key

EA Outcome

EA Process

Example core diagram – diversification

► A Core Diagram of the chosen Operating Model

Shared Technologies

Business unit Specific data

Business unit specific

customers

Process

Technology

Data

Required

Optional

Customer

Types

Process

Technology stack

Process

Pro

cess

Pro

cess

Shared Processes

Avancier


Key

EA Outcome

EA Process

Example core diagram – replication


Standard processes

Automated and linking

technologies

Business unit Specific data

Business unit specific

customers

Process

Technology

Data

Required

Optional

Customer

Types

Process Process

Process Process Process

Avancier


Key

EA Outcome

EA Process

Example core diagram – coordination


Shared customers

Shared data

Integrating technologies

Linked processes

Process

Technology

Data

Required

Optional

Customer

Types

Process

Process

Process

Process

Data

Process Customer

Types

Avancier Example – Fritidsresor. Processfokus & tjänsteinventering


Avancier Example - ITT W&WW


Avancier


See case study exercise

Avancier


4 Set Priorities

► Assess projects against the strategy

► Navigate the Stages of Enterprise Architecture Maturity ■ Business silos (12%)

● Local apps and infrastructure

■ Standardised technology (48%) ● Shared infrastructure,

● Technology standards

● Fewer platforms

■ Optimised core (34%) ● Enterprise systems (shared apps)

● No data redundancy

■ Business modularity (6%) ● Reusable modules

Avancier


Using Avancier Methods to increase your EA maturity

► “navigate the stages of EA

maturity” (MIT)

Avancier Methods for

ENTERPRISE ARCHITECTURE

Rationalisation processes

Generic rationalisation process

Business structure rationalisation

Data store rationalisation

Application portfolio rationalisation

Technology portfolio rationalisation

The stages of EA Maturity (MIT)

4 Business modularity (6%)

Reusable modules

3 Optimised core (34%)

No data redundancy

Enterprise systems (shared apps)

2 Standardised technology (48%) Fewer platforms Technology standards Shared infrastructure

1 Business silos (12%)

Local apps and infrastructure

Avancier


5 Design and implement an IT Engagement Model

1. IT governance at the senior levels of the company

2. Disciplined project management across all major projects

Links to ensure 1 and 2 reinforce one another

In essence

■ IT linked to business

■ IT linked to PMO

Avancier


6 Exploit your foundation for execution for growth

► Build the Foundation one Project at Time

► From the start – Cash In on the Learning

► Train

► Incentivise

► Encourage and reward creativity

Avancier Taking the process-oriented view

► The “operating model” grid refers to business processes:

■ 1/1) Diversification: Different processes, not integrated

■ 1/2) Replication: Same processes, not integrated

■ 2/1) Coordination: Different processes, integrated (share data)

■ 2/2) Unification: Same processes, integrated (share data)

► In 2/1 and 2/2), integration implies processes share data


High BP

integration

Coordination

2/1

Unification

2/2

Low BP

integration

Diversification

1/1

Replication

1/2

Low BP

standardisation

High BP

standardisation

Avancier Taking the data-oriented view

► Suppose we look at all data created and used during processes?

Then we see a slightly different perspective

■ 1/1) Different processes, using different data

■ 1/2) Same processes, using different data

■ 2/1) Different processes, using same data

■ 2/2) Same processes, using same data

► In 1/2), can you standardise processes without standardising data

types?


High BP

integration

Coordination

2/1

Unification

2/2

Low BP

integration

Diversification

1/1

Replication

1/2

Low BP

standardisation

High BP

standardisation

Avancier


See case study exercise

avancier method (am) 103... · 2/1) coordination: different processes, integrated (share data) 2/2)...

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